EMI have struck another deal with a flagship artist that goes beyond the traditional recording contract. EMI division Virgin have entered a partnership with rock group Korn that is being described as a "multiple rights joint venture" in which the major label will make a considerable investment in the band but in return for a share of earnings made outside the recordings sector of the music business, including touring, merchandising, publishing, sponsorship, and film, TV, book and video game projects.
To a certain extent, the new deal follows a model pioneered when EMI renewed its relationship with Robbie Williams back in 2002. Other artists and labels have been slow to adopt the model, but some senior figures in the industry believe more and more record deals will have to go beyond just recordings as CD sales account for an ever smaller amount of an artist's overall earning potential.
Commenting on the Korn deal, Jeff Kwatinetz of their management company The Firm told reporters this week: "This deal represents the necessary evolution that our industry must make, aligning interests among bands, management and recording companies".